Closing in January when the property taxes are super low

When someone has lived in a home for many years, their property taxes are often artificially low because of long-standing exemptions and assessment caps (like Florida’s Save Our Homes).If you close in January of the following year, here’s what happens:What you get at closingProperty taxes are paid in arrearsAt a January closing, the tax proration is based on the prior year’s tax billThat bill still reflects:The long-term owner’s capped assessmentTheir homestead exemptionAs the buyer, you effectively benefit from those lower taxes for that entire yearWhy the increase doesn’t hit right awayThe county does not immediately reassess at closingThe new assessed value is set as of January 1 of the year after the saleThe higher tax bill is issued the following yearTimeline exampleJanuary 2026 – You close on the homeAll of 2026 – Taxes are based on the prior owner’s low, capped valueNovember 2026 – You receive the first tax bill, still using the old assessmentJanuary 2027 – Reassessment takes effect at the higher valueNovember 2027 – You receive the higher tax billKey takeawayYou enjoy the lower taxes for the full year after closingThe adjustment does not occur until the second yearThis is why January closings after a long-term owner can look very attractive up front—but the increase is delayed, not eliminatedWhy this mattersMany buyers think the taxes shown at closing are permanent. In reality, they’re just on a one-year lag due to how property tax assessments work.tune in and learn https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show